House Republican leaders hope to add a provision to the congressional insider trading bill that would forbid members of Congress from gaining special entrance into initial public offerings (IPOs) of stock. The plank is known as the “Pelosi provision,” a House GOP aide told The Hill
Pelosi participated in Visa’s 2008 IPO under shady circumstances. While she denied any wrongdoing, a “60 Minutes” report last year cited her and several other members of Congress, suggesting Pelosi and her husband benefited from the Visa IPO at the same time Congress was considering fresh rules for credit card companies.
The “Pelosi Provision” may spark opposition from Democrats. The current legislation has broad support from both sides of the aisle. Pelosi spokesman Drew Hammill declined to comment on the planned provision. “We look forward to reviewing the text of the bill Leader [Eric] Cantor is writing in secret,” he told The Hill.
The Stop Trading on Congressional Knowledge Act, originally offered in the House, has now reached 283 co-sponsors, including 99 Republicans. The Senate overwhelmingly passed its version last week.
Democrats accused Cantor of slowing work on the bill last year, but he has put it at the top of the agenda for 2012.
© 2013 Newsmax. All rights reserved.